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HomeMy WebLinkAboutOrdinance - 9200-1988 - Combination Tax And Golf Course Revenue Certificates Of Obligation 1988 - 04/28/1988,.... I . ~- .- ORDINANCE NO. 9200 First Reading Apri 1 28, 1988 Second Reading April 29, 1988 AN ORDINANCE authorizing the issuance of "CITY OF LUBBOCK, TEXAS, COMBINATION TAX . AND GOLF COURSE REVENUE CERTIFICATES OF OBLIGATION, SERIES 1988"; levying an ad valorem tax upon all taxable property in the City and pledging the Net Revenues derived from the operation and ownership of the Golf Course Facilities for the payment of said Certificates~ specifying the terms and features of such Certificates and resolving other matters incident and related to the issuance, sale, security, payment and delivery of said. Certificates, including the approval and distribution of an Official Statement relating thereto; and providing an effective date. -WHEREAS, the City Council of the City of Lubbock, Texas has determined that certificates of.obligation should be issued to pay contractual obligations to be incurred for ( i) the construction of public works, to wit: improving, enlarging, equipping, repairing; operating or maintaining (any or all) a municipal golf course and related facilities, including the purchase of materials, supplies and equipment therefor, and (ii) professional services; and WHEREAS, notice of intention to issue such certificates of obligation (stating the time and place the Council proposed to authorize the issuance of such certificates, the maximum amount proposed to be issued, the purpose thereof and the manner in which the Council proposes .to pay for such certificates) has been published in Lubbock Avalanche Journal , a newspaper hereby found to be of general circulation in the City of Lubbock, Texas, on March 27 , 1988 and Apr i1 3 , 1988, with the date of the first publication being before the fourteenth (14th) day before the tentative date stated in said notice for the first reading of the ordinance authorizing the certificates; and WHEREAS, no petition protesting the issuance of such certificates described: in the aforesaid notice, signed by at least 5\ of the qualified electors of the City, has been presented to or filed! with the City Secretary on or prior to the date of the first reading of the ordinance authorizing the certificates; and WHEREAS, the City Council hereby finds and determines that all of the certificates of obligation described in such notice should be issued at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: SECTION 1: Authorization-Designation-Principal Amount- Purpose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $750,000 to be designated and bear the title "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND GOLF COURSE REVENUE CERTIFICATES OF OBLIGATION, SERIES 1988" (hereinafter referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i) the construction of public works, to wit: improving, enlarging, equipping, repairing, operating, or maintaining (any or all) a municipal golf course and related facilities, including the purchase of materials, supplies and equipment therefor, and (ii) professional services, pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Texas, including the Certificate of Obligation Act of 1971, as amended (Subchapter C of Chapter 271, Local Government Code), Tex. Rev. Civ. Stat. Ann. article 1269j-4.1, as amended, and the following prov1s1ons of the City Charter of the City of Lubbock: Article VII Section 1 and Article XI Section 1. SECTION 2: Fully Registered Obligations -Authorized Denominations-Stated Maturities-Date. The Certificates shall be issued as fully registered obligations only, shall be dated May 15, 1988 (the "Certificate Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the Certificates shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at per annum rates in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rate{sl 1989 $15,000 9-9 \ 1990 30,000 '7 9 % 1991 35,000 c;: 9 % 1992 35,000 9 % 1993 40,000 Lj 9 \ 1994 40,000 9 9 \ 1995 45,000 9 9 % 1996 50,000 ?,&?5 z.azs % 1997 55,000 7,. Jl() 7.10 % 1998 55,000 ? 7 % 1999 60,000 ? 7 \ 2000 65,000 7 7 \ 2001 70,000 2 7 % 2002 75,000 I 7 % 2003 80,000 7 7 % -2- l 8 ~ I 0 The Certificates shall bear interest on the unpaid principal amount thereof from the Certificate Date at the per annum rate(s) shown above in this Section (computed on the basis of a 360-day year of twelve 30-day months). Interest on the Certificates shall be payable semiannually on February 15 and August 15 in each year, commencing February 15, 1989. SECTION 3: Terms of Payment-Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Certificates, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Certificates (hereinafter called the "Holders") appearing on the registration and transfer books (the "Security Register") maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of Texas Commerce Bank National Association, Lubbock, Texas to serve as Paying Agent/Registrar for the Certificates is hereby approved and confirmed. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Certificates shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its principal office. Interest on the Certificates shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar ( i) by check sent United States Mai 1, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the principal office of the -3-2 8 S I 0 •• Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Certificates having Stated Maturities on and after February 15, 1999, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 1998 or on any interest payment date thereafter at the redemption price of par plus accrued interest to the date of redemption. (b) Exercise of Redemption Option. At least forty-five (45) days prior to a redemption date for the Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Certificates, t~e principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the governing body of the City. (c) Selection of Certificates for ·Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/ Registrar shall treat such Certificates as representing the number of Certificates Outstanding which is obtained by dividing .the principal amount of such Certificates 'by $5,000 and shall select the Certificates to be redeemed within such Stated Maturity by lot. -4- 2 8 5 l D .· (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Certificate to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principa 1 amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the principal office of the Paying Agent/Registrar only upon presentation and surrender of the Certificates. If a Certificate is subject by its terms to prior redemption and has been called for redemption and not ice of redemption has been duly given as hereinabove provided, such Certificate (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys sufficient for the payment of such Certificate (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5: Registration Transfer Exchange of Certificates-Predecessor Certificates. A Security Register relating to the registration, payment, and transfer or exchange of the Certificates shall at all times be kept and maintained by the City at the principal office of the Paying Agent/Registrar, as provided herein and in accordance with the provisions of an agreement with the Paying Agent/Registrar and such rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Certificates issued und~r and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Certificate may be transferred or exchanged for Certificates of other authorized -5-2 8 ) I 0 .. . denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar at the principal office for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Certificate for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar, one or more new Certificates shall be registered and issued to the assignee or transferree of the previous Holder; such Certificates to be in authorized denominations, of like Stated Maturity and of a like aggregate principal amount as the Certificate or Certificates surrendered for transfer. At ~he option of the Holder, Certificates may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principai arriount as the Certificates surrendered for exchange, upon surrender of the Certificates to be exchanged at the principal office of the Paying Agent/ R~gistrar. Whenever any Certificates are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Certificates to the Holder requesting the exchange. All Certificates issued in any transfer or exchange of Certificates shall be delivered to the Holders at the principal office of the Paying Agent/Registrar or sent by United States Mai 1, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Certificates," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term -6-2 8 S I 0 "Predecessor Certificates" shall include any mutilated, lost, destroyed, or stolen Certificate for which a replacement Certificate has been issued, registered and delivered in lieu thereof pursuant to the provisions of Section 27 hereof and such new replacement Certificate shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an assignee of a Holder any Certificate called for redemption, in whole or in part, within 30 days of the date fixed for the redemption of such Certificate; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate called for redemption in part. SECTION 6: Execution -Registration. The Certificates shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Certificate Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Certificates to the initial purchaser(s) and with respect to Certificates delivered in subsequent exchanges and transfers, all as authorized and provided in the Bond Procedures Act of 1981, as amended. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially in the form provided in Section 8C, manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 80, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified, registered and delivered. SECTION 7: Initial Certificate(s). The Certificates herein authorized shall be initially issued either· (i) as a single fully registered certificate in the total principal amount of $750,000 with principal installments to become due -7- l II 5 I 0 and payable as provided in Section 2 hereof and numbered T-1, or (ii) as fifteen (15) fully registered certificates, being one certificate for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Certificate(s)") and, in either case, the Initial Certificate(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Certificate(s) shall be the Certificates submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Certificate(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Certificate(s) delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8: Forms. A. Forms Generally. The Certifi- cates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an op1n1on of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Certificates as evidenced by their execution. Any portion of the text of any Certificates may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. The definitive Certificates shall be printed, lithographed, or engraved or produced in any other similar manner, all as determined by the officers executing such Certificates as -8-l I! ; l [) evidenced by their execution, but the Initial Certificate(s) submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. · B. Form of Definitive Certificates. REGISTERED NO. REGISTERED $ ___ _ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND GOLF COURSE REVENUE Certificate Date: May 15, 1988 Registered Owner: Principal Amount: CERTIFICATE OF OBLIGATION, SERIES 1988 Interest Rate: Stated Maturity: % ------ CUSIP NO: DOLLARS The City of Lubbock (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Lubbock, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Certificate Date at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 1989. Principal of this Certificate is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the principal office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance -9- l 8) I D he'l'einafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Certificate is one of the series specified in its title issued in the aggregate principal amount of $750,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i} the construction of public works, to wit: improving, enlarging, equipping, repairing, operating or maintaining (any or all) a municipal golf course and related facilities, including the purchase of materials, supplies and equipment therefor, and (ii) professional services, under and in strict conformity with the Constitution and laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended (Subchapter C of Chapter 271, Local Government Code}, Tex. Rev. Civ. Stat. Ann. artic.le 1269j-4.1, as amended, and the following prov1s1ons of the City Charter of the City of Lubbock: Article VIII Section 1 and Article XI Section 1, and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Certificates maturing on and after February 15, 1999, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 1998, or on any interest payment date thereafter, at the redemption price of par, together with accrued interest to the date of redemption and upon 30 days prior written notice being sent by United States Mail, first class postage prepaid, to the registered owners of the Certificates to be redeemed, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Certificate (or any portion of the principal sum hereof) shall have been duly called for rede,mption and notice of such redemption duly given, 'then upon such redemption date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due and -10- 2 6 !i I D payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event of a partial redemption of the principal amount of this Certificate, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of this Certificate to the principal office of the Paying Agent/Registrar and there shall be issued, without charge therefor to the registered owner hereof, a new Certificate or Certificates of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum hereof. If this Certificate is selected for redemption, in whole Of in part, the City and the Paying Agent/Registrar shall not be required to transfer this Certificate to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, su~h limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance hereof in the event of its redemption in part. The Certificates are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City and are additionally payable from and secured by a lien on and pledge of the Net Revenues (as defined in the Ordinance) of the City's Golf Course Facilities (identified and defined in the Ordinance), such lien and pledge, however, being junior and subordinate to any prior pledge of net revenues of the Golf Course Facilities which may hereafter be made. Reference is hereby made to the Ordinance, a copy of which is on file in the principal office of the Paying Agent/Registrar, and to all the provisions of which the registered owner of this Certificate by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificates; the properties constituting the Golf Course Facilities; the Net Revenues pledged to the payment of the principal of and interest on the Certificates; the nature and extent and manner of enforcement of the pledge; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar i the terms and provisions upon which the tax levy and the liens, pledges, charges and covenants made therein may be discharged at or prior to the -11- l 8 ) I 0 maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on· the Security Register only upon its presentation and surrender at the principal office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i} on the Record Date as the owner entitled to payment of interest hereon, ( ii} on the date of surrender of this Certificate as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii} on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that ·all acts, conditions and things required to exist and be done' precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly -12- l 8 ; I ll done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any Constitutional or statutory limitationi and that due provision has been made for the payment of the principal of and interest on the Certificates by the levy of a tax and a pledge of and lien on the Net Revenues of the Golf Course Facilities as aforestated. In case any provision in this Certificate shall be invalid, illegal, or unenforceable, the validity., legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Certificate to be duly executed under the official seal of the City as of the Certificate Date. CITY OF LUBBOCK, TEXAS COUNTERSIGNED: Mayor City Secretary (SEAL) C. *Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Certificate(s) only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS ( ( ( ( REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney General -13- 2 8 S I D of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my this signature and seal of office Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do Not Print on Definitive Certificates D. Form of Certificate of Paying Agent/Registrar to appear on Definitive Certificates only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued and registered under the provisions of the within-mentioned Ordinance; the certificate or certificates of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registration Date: TEXAS COMMERCE BANK NATIONAL ASSOCIATION, LUBBOCK, TEXAS As Paying Agent/Registrar By Authorized Signature E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) ....................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . • ..................................................... . (Social Security or other identifying number: ......•..•...... ........................ ) the within Certificate and all rights -14- 2 8 5 I 0 thereunder, and hereby irrevocably constitutes and appoints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: .................................. Signature guaranteed: NOTICE: The signature on this assignment must correspond with of the registered owner as it appears on the face of the within Certificate in every particular. F. The Initial Certificate(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Certificate shall be .modified as follows: (i) immediately under the name of the certificate the headings "Interest Rate -:-:--:-----" and "Stated Maturity " shall both be completed "as shown below"; (ii) paragraph one shall read as follows: Registered Owner: Principal Amount: Dollars The City of Lubbock (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Lubbock, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: YEAR PRINCIPAL INSTALLMENTS (Information to be inserted from schedule in Section 2 hereof). INTEREST RATE (or so much thereof as shall not have been prepaid. prior to maturity) and to pay interest on the unpaid principal amounts hereof from the Certificate Date at the per annum rate( s) of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on -15-2 8 f> I 0 February 15 and August 15 of each year, commencing February 15, 1989. Principal of this Certificate is payable at its Stated Maturity or prepayment date to the registered owner hereof upon presentation and surrender at the principal office of Texas Commerce Bank National Association, Lubbock, Texas (the "Paying Agent/Registrar"). Interest is payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchang~ or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tende~ for the payment of public and private debts. SECTION 9: Definitions. That for purposes of this Ordinance and for clarity with respect to the issuance of the Certificates, and the levy of taxes and appropriation of Net Revenues therefor, the following words or terms, whenever the same appear herein without qualifying language, are defined to mean as follows: (a) The term "Additional Obligations'' shall mean combination tax and revenue certificates of obligation hereafter issued which, in whole or in part, are payable from ad valorem taxes and additionally payable from and secured by a lien on and pledge of the Net Revenues of the Golf Course Facilities on a parity with and of equal rank and dignity with the lien and pledge securing the payment of the Certificates. (b) The term "Certificates" shall mean the $750,000 "CITY OF LUBBOCK, TEXAS, COMBINATION TAX AND GOLD COURSE REVENUE CERTIFICATES OF OBLIGATION, SERIES 1988" authorized by this Ordinance. (c) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 10 of this Ordinance. (d) The term "Collection Date" shall mean, 'when reference is being made to the levy and collection of annual ad valorem taxes, the date annual ad valorem -16-l 8 5 I 0 taxes levied each year by the City become delinquent. (e) The term "Fiscal Year" shall mean the annual financial accounting period used with respect to the operation of the Golf Course Facilities now ending on September 30 of each year; provided, however, the City Council may change, by ordinance duly passed, such annual financial accounting period to end on another date if such change is found and determined to be necessary. (f) The term "Golf Course Facilities" shall mean the City's existing golf course comprised of 260 acres of irrigated turf presently located on the northeast quadrant of Mackenzie State Park and the improvements to be constructed with the proceeds of the Certificates and known as the "Meadowbrook Golf Course," and being all land and facilities owned, operated and maintained by the City at such location for the playing and practicing, or the giving of instruction in, the game of golf, including a clubhouse, maintenance barn, cartshed, maintenance storage facility and similar facilities incident and/or related thereto or therefor or as hereinafter designated. (g) The term "Government Securities" shall mean direct obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, and the United States Treasury obligations such as its State and Local Government Series in book-entry form. (h) The term "Net Revenues" shall mean, with respect to any period, all income, receipts and revenues received by the operation and ownership of the Golf Course Facilities including, but not limited to, admission charges, parking fees and concession receipts and rentals, less Operating and Maintenance Expenses of the Golf Course Facilities during such period. (i) The term "Operating and Maintenance Expenses" shall mean all reasonable and necessary costs and expenses directly related and attributable to the operation and maintenance of the Golf Course Facilities, including, but not limited to, the cost of insurance, the purchase and carrying of stores, materials, and supplies, the payment of salaries, -17- labor and other expenses reasonably and properly charged, under generally accepted accounting principles, to the operation and maintenance of the Golf Course Facilities. Depreciation charges on equipment, machinery, buildings and other facilities and expenditures classified under generally accepted accounting principles as capital expenditures shall not be considered as "Operating and Maintenance Expenses" for purposes of determining "Net Revenues". (j) The term "Outstanding" when used in this Ordinance with respect to Certificates means, as of the date of determination, all Certificates theretofore issued and delivered under this Ordinance, except: ( i) those Certificates cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (ii) those Certificates deemed to be duly paid by the City in accordance with the provisions of Section 23 hereof by the irrevocable deposit with the Paying Agent/Registrar, or an authorized escrow agent, of money or Government Securities, or both, in the amount necessary to fully pay the principal of, premium, if any, and interest ~thereon to maturity or redemption, as the case may be, provided that, if such Certificates are to be redeemed, notice of redemption thereof shall have been duly given pursuant to this Ordinance or irrevocably provided to be given to the satisfaction of the Paying Agent/ Registrar, or waived; and (iii) those mutilated, destroyed, lost, been and or stolen Certificates which have replaced with Certificates registered delivered in lieu thereof as provided Section 27 hereof. in SECTION 10: Certificate Fund. That, for the purpose of paying the interest on and to provide a sinking fund for the payment, redemption and retirement of the Certificates, an interest and sinking fund or account shall be created and maintained on the books and records of the City, whi~h fund or account shall be maintained at a depository of City funds and be known as the "SPECIAL 1988 CITY OF LUBBOCK, TEXAS, -18- 2 8 s l 0 COMBINATION TAX AND GOLF COURSE REVENUE CERTIFICATE OF OBLIGATION FUND". The Certificate Fund shall be a special fund or account maintained solely for the payment of the Certificates. Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent/Registrar for the Certificates, from funds on deposit in the Certificate Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Certificates as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause immediately avai !able funds to be deposited with the Paying. Agent/Registrar for the Certificates at the close of business on the last business day next preceding each interest and/or principal payment date for the Certificates. Pending the transfer of funds to the Paying Agent/Registrar, money in the Certificate Fund may, at the option of the City, be invested in obligations identified in, and in accordance with the provisions of the "Public Funds Investment Act of 1987" relating to the investment of "bond proceeds"; provided that all such investments shall be made in such a manner that the money required to be expended from said Fund will be available at the proper time or times. All interest and income derived from deposits and investments in said Certificate Fund shall be credited to, and any losses debited to, the said Certificate Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SECTION 11: Tax Levy. That to provide for the payment of the "Debt Service Requirements" on the Certificates being (i) the interest on said Certificates and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2\ (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while said Certificates or any interest thereon shall remain Outstanding, a sufficient tax on each one hundred dollars • valuation of taxable property in said City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be deposited to the credit of the Certificate Fund. This governing body hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it ha.ving been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally -19- 2 8 5 1 0 sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: (a) Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine: (1) The amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of Net Revenues of the Golf Course Facilities appropriated and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. (2) The amount of Net Revenues of the Golf Course Facilities, appropriated and to be set as ide for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (3) The amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12: Pledge of Revenues. The City hereby covenants and agrees that all Net Revenues of the Golf Course Facilities, with the exception of those in excess of the amounts required to be deposited to the Certificate Fund as hereafter provided, are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates and Additional Obligations, if issued, as herein provided, such pledge of and lien on the Net Revenues being junior and -20- 2 8 S 1 D subordinate to any prior pledge of and lien on the Net Revenues of the Golf Course Facilities which may hereafter be made, and the pledge of the Net Revenues of the Golf Course Facilities herein made for the payment of the Certificates shall constitute a lien on the Net Revenues of the Golf Course Facilities in accordance with the terms and provisions hereof and be valid and binding without any physical delivery thereof or further act by the City. SECTION 13: Operating Fund. The City hereby covenants and agrees that all revenues received from the operation and ownership of the Golf Course Faci~ities shall be kept separate and apart from all other funds and moneys of the City, and such revenues shall be deposited from day to day as collected into a fund to be maintained at an official depository of the City, known as the "City of ~ubbock Golf Course Operating Fund" (hereinafter called the "Operating Fund"), during the period of time the Certificates are Outstanding. All moneys deposited in the Operating Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown, to wit: · First: To the Maintenance Expenses operation, maintenance Course Facilities; and. payment of Operating and properly charged to the and administration of the Golf Second: To the payment of the amounts required to be deposited in the special funds and accounts created and established for the payment of the Certificates (the Certificate Fund) and Additional Obligations. Any Net Revenues rema1n1ng in the Operating Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. SECTION 14: Deposits to Certificate Fund. The City hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to each interest and principal payment date for the Certificates from the pledged Net Revenues of the Golf Course Facilities in the Operating Fund an amount equal to one hundred per centum (100\) of the amount required to fully pay the interest and principal payments then due and payable on the Certificates, such deposits to pay accruing interest and maturing . principal on the Certificates to be , made in substantially equal monthly installments on or before the 1st day of each month beginning the lst day of the month next -21- l 8 > I D following the date of delivery of the ~ertificates to the initial purchaser. The deposits to be made to the Certificate Fund, as hereinabove provided, shall be made until such time as such Fund contains an amount equal to pay the principal of and interest on the Certificates to maturity or redemption, as the case may be. Accrued interest and premium, if any, received from the purchasers of the Certificates deposited to the certificate Fund, earnings received from investments held for the account of the Certificate Fund and ad valorem taxes levied, collected and deposited in the Certificate Fund for and on behalf of the Certificates may be taken into consideration and reduce the amount of the monthly deposits otherwise required to be deposited in the Certificate Fund from the Net Revenues of the Golf Course Facilities. In addition, any surplus proceeds from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said Fund from ad valorem taxes and the Net Revenues of the Golf Course Facilities. SECTION 15: Security of Funds. That all moneys on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only for the purposes permitted by this Ordinance. SECTION 16: Maintenance of Golf Course Insurance. While the Certificates remain Outstanding, the City covenants and agrees to maintain and operate the Golf Course Facilities with all possible efficiency and to maintain casualty and other insurance on the golf course of a kind and in such amounts customarily carried by municipal corporations in the State of Texas operating similar properties; and that it will faithfully and punctually perform all duties with reference to the golf course required by the Constitution and laws of the State of Texas. SECTION 17: Rates and Charges. That the City hereby covenants and agrees with the Holders of the Certificates that green fees and other charges with respect to and associated with the use of the Golf course Facilities will be established and maintained that are reasonably expected, on the basis of available information and experience and with due allowance for contingencies, to provide revenue allocated and budgeted: (a) To pay Operating and Maintenance Expenses of -22- 2 8 S l D the Golf Course Facilities; (b) To produce Net Revenues sufficient to pay the amounts, if any, required to be deposited in the special Funds created and established for the payment of the Certificates (the Certificate Fund) and Additional Obligations; and (c) To pay other legally incurred indebtedness payable from the revenues of the Golf Course Facilities and/or secured by a lien on the Golf Course Facilities or the revenues thereof. SECTION 18: Records and Accounts -Annua 1 Audit. The City further covenants and agrees that so long as any of the Certificates remain Outstanding, it will keep and maintain accurate and complete records and accounts pertaining to the operation of the Golf Course Facilities in which complete and correct entries shall be made of all transactions relating thereto. The City further agrees that following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of Certified Public Accountants, which audit may be made in conjunction with and be a part of the annual audit of all records and accounts of the City required by the laws of the State of Texas, including v.T.C.A., Local Government Code, Chapter 103. Copies of each annual audit shall be furnished to the Executive Director of the Municipal Advisory Council of Texas at his office in Austin, Texas, and upon written request, to any Holder of 20% or more in principal amount of the Certificates. SECTION 19: Remedies in Event of Default. That in addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions or obligations set forth in this Ordinance, the owner or owners of any of the Certificates shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, or shall be construed to be a waiver of any such default or acquiescense therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be -23- l 8 5 I D cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 20: Special Covenants. That the City hereby further covenants as follows: (a) That it has the lawful power to pledge the Net Revenues of the Golf Course Facilities supporting this issue of Certificates and has lawfully exercised said powers under the Constitution and laws of the State of Texas, including said power existing under V.T.C.A., Local Government Code, Subchapter C of Chapter 271 and Tex. Rev. Civ. Stat. Ann. article 1269j-4.1. (b) That other than for the payment of the Certificates, the Net Revenues of the Golf Course Facilities have not in any manner been pledged to the payment of any debt or obligation of the City or of the Golf Course Facilities. SECTION 21: Issuance of Additional Obligations. That the City hereby expressly reserves the right to hereafter issue, without limitation as to amount or any other restriction, Additional Obligations, as well as the right to issue any other special or general obligations payable from and secured, in whole or in part, by a subordinate lien on and pledge of the Net Revenues of the Golf Course Facilities. SECTION 22: Covenants to Maintain Tax-Exempt Status. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction, or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which, if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City shall have received a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Certificate pursuant to section 103 of the Code, the City agrees, covenants and represents that: (a) Definitions. When used in this Section, the following terms have the following meanings: "Code" means the Internal Revenue Code of 1986, -24-l 8 S l 0 as amended by all legislation, if any, enacted on or before the Issue Date. "Gross Proceeds" when used with respect to the Certificates or any other issue of obligations of the City, means original proceeds, amounts received (including repayments of principal) as a result of investing the original proceeds of the issue, transferred proceeds I sinking fund proceeds I amounts invested in a reasonably required reserve or replacement fund, securities or obligations pledged by the City as security for payment of debt service on the Certificates or such other issue, and any other amounts used to pay debt service on the Certificates or such other issue, together with earnings from the investment of the foregoing. z 8 5 1 0 "Investment" means (1) a share of stock in a corporation or a right to subscribe for or to receive such a share, (2) any obligation, including United States Treasury bonds, notes, and bills and bank deposits, whether or not certified or interest be a ring I but excluding oblJ,.qations. the interest on which is, in the opinion of counsel nationally recognized in the field of municipal bond law, excludable from the gross income of any owner thereof and is not included in computing the alternative minimum taxable income of individuals under the Code or the Internal Revenue Code of 1954, as amended to the date of issuance of such obligations, (3) any annuity contract, or any other deferred payment contract acquired to fund an obligation of the City, or (4) any other property held for investment. "Issue Date" means the date on which the Certificates are first authenticated and delivered to the initial purchasers against payment therefor. "Issue Price" of the Certificates of each Stated Maturity means the aggregate initial offering price of all the Certificates of such Stated Maturity to the public (exclusive of underwriters, dealers, -25- 2 8 5 I 0 bondhouses, brokers, and similar persons or organizations acting in the capacity of underwriters or wholesalers) at which a substantial number of Certificates of such Stated Maturity are sold to the public, including accrued interest to the Issue Date, if any. "Nonpurpose Investment" means any Investment in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purpose of the Certificates. "Purchase Price" of any Investment means (1) if a United States Treasury obligation acquired directly from the United States Treasury, the amount paid therefor, (2) if a certificate of deposit issued by a commercial bank, the bona fide bid price quoted by a dealer who maintains an active secondary market in such certificates of deposit, and (3) otherwise, generally the mean of the bid price and the offer·ed · price therefor on an established market on the day on which such Investment is purchased or contracted for or, if there are no bid prices and offered prices on such date, on the first day preceding such date for which there are bid prices and offered prices. "Yield" of (1) any Investment means the discount factor which, when used in computing the present value of all scheduled payments of principal of and interest on such Investment on the date such Investment is purchased with Gross Proceeds or otherwise allocated to Gross Proceeds, results in an amount equal to the Purchase Price thereof (but excluding any commissions), compounding semiannually, and (2) discount computing the Certificates means the, factor which, when used in the present value on the Issue -26- Date of all scheduled payments of principal of and interest on the Certificates, results in an amount equal to aggregate Issue Prices of the Certificates of each Stated Maturity, compounding semiannually. (b) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the regulations and rulings thereunder, the City shall, at all times prior to the last Stated Maturity of Certificates, ( 1) exclusively own, operate, and possess the Golf Course Facilities and all properties constituting the Golf Course Facilities and its components, and all property the acquisition, construction, or improvement of which is to be financed directly or indirectly with Gross Proceeds of the Certificates and not use or permit the use of such Gross Proceeds or the properties constituting the Golf Course Facilities or any property acquired, constructed, or improved with such Gross Proceeds in any activity carried on by any person or entity other than a state or local government, unless such use is solely as a member of the general public or such use is restricted or limited in such manner so as to not adversely · affect the exemption from federal income taxation of the interest on the Certificates pursuant to Section 103 of the Code, or (2) not directly or indirectly impose or accept any charge or other payment for use of Gross Proceeds of the Certificates or the Golf Course Facilities or any property the acquisition, construction, or improvement of which is to be financed directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (c) No Private Loan. Except to the extent permitted by section. 141 of the Code and the regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if (1) property acquired, constructed, or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes, (2) capacity in or service from such property is committed to such ,person or entity under a take-or-pay, output, or similar contract or arrangement, or (3) indirect benefits, or burdens and benefits -27- l 8 S I D ,. " of ownership, of such Gross Proceeds or any property acquired, constructed, or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (d) Not to Invest at Higher Yield. Except to the extent permitted by section 148 of the Code and the regulations and rulings thereunder, the City shall not, at any time prior to the final Stated Maturity of the Certificates, directly or indirectly invest Gross Proceeds of the Certificates in any Investment {or use such Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Issue Date of all Investments acquired with such Gross Proceeds {or with money replaced thereby) whether then held or previously disposed of, exceeds the Yield of the Certificates. {e) Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Certificates to be federally guaranteed within the meaning of section 149{b) of the Code and the regulations and rulings thereunder. (f) Information Report. The City shall timely file with the Secretary of the Treasury the information required by section 149(e) of the Code with respect to the Certificates on such form and in such place as such Secretary may prescribe. (g) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the regulations and rulings thereunder, 2 8 5 I D (1) The City shall account for all Gross Proceeds of the Certificates (including all receipts, expenditures, and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures, and investments thereof) and sha 11 retain all records of such accounting for at least six years after the day on which the last outstanding Certificate is discharged. The City may, however, to the extent permitted by law, commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of such Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than annually, the City shall calculate, in accordance with rules set. forth in section 148(f) of the Code and the regulations and rulings thereunder, the excess of: -28- (i) the amount earned on all Nonpurpose Investments (other than Investments attributable to any excess previously calculated pursuant to this paragraph (2)) acquired with Gross Proceeds of the Certificates, over (ii) the amount which would have been earned if such Nonpurpose Investments were invested at a rate equal to the Yield on the Certificates, plus any income attributable to any excess previously calculated pursuant to this paragraph (2). In this connection, the City hereby declines to make the election provided for in section 148(f)(4)(A)(ii) of the Code. (3) As additional consideration for the purchase of the Certificates by the initial purchasers thereof and the loan of the money represented thereby, and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City sha 11 pay to the United States the amount described in paragraph (2) above at the times, in the installments, to the place, in the manner, and accompanied by such forms or other information as is or may be required by sect ion 148 (f) of the Code and the regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations required by paragraph (2) and, if such error is made, to discover and promptly to correct such error within a reasonable amount of time thereafter, including payment to the United States of any delinquent amounts owed to it, interest thereon, and any assessed penalty. (i) Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Certificates enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transact ion had been at arm • s length and had the Yield of the Certificates not been relevant to either party. SECTION 23: the City shall 2 8 S I D Satisfaction pay or cause of to -29- Obligations of City. If be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Net Revenues of the Golf Course Facilities under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably depo~ited in trust with the Paying Agent, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Certificates on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as "arbitrage bonds" within the meaning of Sect ion 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of four (4) years after the Stated Maturity, or applicable redemption date, of the Certificates such moneys were deposited and are held in trust to pay shall. upon the req4est of the City be remitted to the City against' a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City -30- 2 8 ~ I D ·~· ' shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 24: Ordinance a Contract Amendments. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City, may, without the consent of or notice to any Holders of the Certificates, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders of the Certificates, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent .of Holders of the Certificates holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, amend, add to, or rescind any of the prov1s1ons of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (I) extend the time or times of payment of the principal of, premium, if · any, and interest on the Certificates, reduce the principal amount thereof, the redemption price therefor or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required to be held by Holders for consent to any such amendment, addition, or rescission. SECTION 25: Notices to Holders -Waivers. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each· Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice -with respect to all other Certificates. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with ·the Paying Agent/Registrar, but such filing shall not be a condition -31- 2 B ~ I D precedent to the validity of any action taken in reliance upon such waiver. SECTION 26: Cancellation. All Certificates surrendered for payment, redemption, transfer, or exchange, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Certificates held by the Paying Agent/Registrar shall be returned to the City. SECTION 27: Mutilated, Destroyed Lost and Stolen Certificates. In case any Certificate of a series shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Certificate of like series, form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Certificate, or in lieu of and in substitution for such destroyed, lost or stolen Certificate, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Certificate, and of the authenticity of the ownership thereof and { ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Certificate of a series shall be borne by the Holder of the Certificate mutilated, or destroyed, lost or stolen. Every replacement Certificate of a series issued pursuant to this Section shall be a valid and binding obligation of such series, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates of said series; notwithstanding the enforceability of payment by anyone of the destroyed, lost or stolen Certificates. The provisions of this Section are exclusive and shall preclude {to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. -32- l 8 ~ 1 0 SECTION 28: Sale of the Certifica~es. The sale of the Certificates to ~.fb Pl..iiLJ.o ........ ; .,xn,'"-"ik4i the price of par, and accrued interest, plus a premium of $ -<:J-is hereby approved and confirmed. Delivery tl'\ereof to the purchaser(s) shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 29: Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Certificates, and shall take and have charge and control of the Initial Certificate(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the initial purchasers. Furthermore, the Mayor, City Secretary, City Treasurer and City Manager of the City, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Certificates, including a certification as to facts, estimates, circumstances and reasonable expectations pertaining to the use and expenditure and investment of the proceeds of the Certificates as may be necessary for the approval of the Attorney General, registration by the Comptroller of Public Accounts and delivery of the Certificates to the Purchasers thereof and, together with the City's financial advisor, bond counsel and the Paying Agent/ Registrar, make the necessary arrangements for the delivery of the Initial Certificate(s) to the initial purchasers. SECTION 30: Printed Opinion~ The initial purchasers• obligation to accept delivery of the Certificates is subject to being furnished a final opinion of Fulbright & Jaworski, Attorneys, Dallas, Texas, approving the Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Certificates by the initial purchaser. Printing of a true and correct reproduction of said opinion on the reverse side of each of the definitive Certificates is hereby approved and authorized. SECTION 31: Official Statement. The Official Statement prepared in the initial offering and sale of the Certificates by the City, together with all addendas, supplements and amendments thereto issued on behalf of the City, is hereby approved as to form and content, and the City Council hereby finds that the information and data contained in said Official Statement pertaining to the City and its financial affairs is -33-2 8 s l 0 true and correct in all material respects and no material facts have been omitted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The use of such Official Statement in the reoffering of the Certificates by the initial purchasers is hereby approved and authorized. SECTION 32:. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 33: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 34: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 35: Severability. If any prOVlSlOn of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 36: =E~f~f~e~c~t __ o~f~H~e~a~d~in~g~s~. herein are for convenience only and construction hereof. The Section headings shall not affect the SECTION 37: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 38: Incorporation of Findings and Determinations. The findings and determinations of. the City contained · in the preamble hereof are hereby incorporated by reference and made a part of this Ordinance for all purposes as -34-l 8 S I D if the same were restated in full in this Section. SECTION 39: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Article 6252-17, Vernon's Texas Civil Statutes, as amended. SECTION 40: Effective Date. This Ordinance shall take effect and be in full force from and after its second reading and final adoption on the date shown below. APPROVED ON FIRST READING, the 28th day of Apri 1 , 1988. APPROVED ON SECOND READING AND PASSED AND ADOPTED, this the 29th day of April , 1988. CITY OF LUBBOCK, TEXAS 'MaYor ATTEST: Qc~J; (City Seal) -35- 2 8 s l 0 ________________________ ,, __ , __ ,_, __ , I. I I ' I I ~ . "!'' .,-·~-. ,r THE STATE OF TEXAS COUNTY OF LUBBOCK R•1.94 Before me frances Hernandel a Notarv Public in and for Lubbock Countv. Texas on this dav personally appeared T.J. Auf& II • Account Haneaer of the S~uthwestern Newsp~- pers Corporation. publishers of the Lubbock Avalanche-.Journal Morning. Evening and Sunday. who being by me duly sworn did depose and say that said newspaper has been published continuously for more than fifty-two weeks prior to the first insertion of this Le«el Notice ---------~-:---:-:--No. 826197 at Lubbock County. Texas and the attached print- ed copy of the Lecel Notice is a true copv of the original and was printed in the Lubbock Avalanche-Journal on the following dates: APrl l JOt HI~ 1• 1.968 412 Wordt ~ ,88 a 8362.56 Account Hana£er LUBBOCK AVALANCHE-JOURNAL Southwestern Newspapers Corporation Subscribed and sworn to before me this J.3tbday of ---'.:.::M:.::I:..::'I~---· 19 88 .. ~ . ~ -.1 ORtUNANC:E lmli . r.I ,N·G. ~~ ,NJ:~IDD}t. . •AN()ROtNAtiCE AUTHORIZ· · ANr.t ~)1{0 ~t UlG THE IUUASC:t: 01' "CITY OF A STORM WATER STORAGe OF LU880CK, TEXAS, COMII~ AND DRAINAGE EASEMENT NAT I 0 NR. TEVAEK••uAEN CDE~~~~I· , LOCATED IN SECTION U, COURSE "' : ILOCK E·l, LUBbOCK COUNTY, CATES OF .OBLIGATION, SE· .TEXAS, AND MORE PARTICU· . RIES 1988"; LEVY.ING AN A~ -----I.ARLY DESCRIBED IN THE ·-----------------------{vALOREM. T.AXR~Iu ~ g~ t------------BODYOFTHISOROINANCE;DI· ABLE PROl?E. • • ~ . RECTING THE CITY ENGINEER Allltl PI.I!.DGlNG6T,!i~:5~ ~~"E ! TO MARK THE OFFICIAl. MAPS ENUES OERIV ""OWNERSHIP o.OF THE CITY OF LUBBOCK TO o0~ET~ETGI00tt.·~~U .... E FACII.I· REFL.ECT SAID ABANDON-r ,. ...-w "''" MENT AND CLOSING; PROVID· · ES FOR THE PAYMENT OF . lNG A SAVINGS CLAUSE; AND lltDCEiUIFICATt!$: Sf':c;.l~x· ;;::,~~I DING FOR PUBLICA· IJIIUGR~~~:~~~~ ~'t:RTIFI: T AND RESQ\.VING OTHER ORDINANCE 19193 · .. CMA1-t\5us !ti(;IOI!NT AN~CIUE!• TO Ttf£ i$$UAR ' · AN ORotNANC!: ABANDON· ~!~i,0sEc~~!_T~;: ~J:€::.. INGANDCI.0$11\IGTWOTRANS. ANO.DEYV""""' DING THE FORMER. PAD EASEMI!ItT$' 11PFPtRC_!!~S~!,ND~IUSTRtBUTION AND A PORTIONoP·AN UND!ill· ,.. ., ..... "" "' T GROUND UTILITY EASEMENT OP AN;~CIA!.. !>TATEMEN LOCATED IN RUSMI.ANO PARK RELATING TttERETOI AND ADDITION TO THE CITY OF !PROVIDING AN EFFECTIVE WBBOCK, LUBBOCK COUNTY, ;OATE-. . . . Tf:XAS, EACH OF ·WHICH IS MORE PA.RTICULARLY DE· , ()RDINANCEI9201 ·SCRIBED HEREINAF.TER IN .. . ·THIS ORDINANCE; DIRECTING . . AN ORDINANCE AUTHOR I%· ·THE CJT'I' eNGINEER TO MARK ; IN G ~ E••et'.!J.OUFA ~UCB~:, THE O.FFICIAL MAPS OF THE . \7.000.-• • ~ CITY OF I.V880CK TO RE• ~EXAS. e.L!CSTTRE~C: I.R. IEGHVTE:~~ FLECT SAID ABANDONMENT POWER !h ,.. AND CLOSING; PROVIDING A BONOS, SERIES 1988": p~~· SAVINGS CLAUSE; AND PRO· SCRIBING THE FORMS. TER ' YIOI.NGFOR PU81.1CATION. ·ANO PROVISIONS OF s:~~ toRDINANCE 19j99 i=~~~s~s.t:~c;..~~~~Hc'hv•$ eLI!CTRIC LIGHT AN'?.=~~~; AN0RDINANCEAUTHORIZ· $Y$TEMT0 1'HE I'AV"" · i lNG THE ISSUANCE OF "CITY THE PRINCIPAl. OF ANQ I~· OF LU880CK. TEXA$..·GI!NER• TEIItEST ON SAID 80N0Sl E • Al. OSLIGATIOU BONOS, IE· 'Ac;tiNGf'ROVISIONSINCIDENT RIES 1988"1 SPECIFYING THE 7 AND RELATED TO THE ISS!J• Tl';RA,\S AND 1!'1: T 1!! YMENT. SECURITY, SAID 80NOS; Le:V~t..UGR A ~g,:. ~E::..~~ DELIVERY OF ~~~ TINI/ING OIRE'CT ANNUAl. AO BONOS; INCL.UDING IOK VALOREM TAX FOR THE PAY· f'ROIIAL. AIIO OIS · T .MENT OF $AID BONOS; AND r 01' Aft OF1'1(\AI. STA EN . ·RESOI,.VING OTHER MATTERS ·. PERTAINIMG THI!l~~~OC~~~ INC I !;lENT AND .RELATED TO· PIIOVIOING AN '" THE IS\UANCE; SALE, PAY· I DATE. D Dl!\;IVERY OF SAID , R-194 p. J. .•..